Severfield-Rowen profits spiral as cuts hit hard

By DAILY MAIL REPORTER
Updated:

 

Yorkshire-based steel group Severfield-Rowen blamed a weak UK economy and austerity cuts for a steep fall in its profits and a halving of its dividend.

A computer generated image of Anish Kapoor's steel structure, which will be placed in the 2012 Olympic Park

New icon: Severfield-Rowen supplied steel for the sculpture by artist Anish Kapoor for the 2012 Olympics,

Chief executive Tom Haughey said the results were still 'creditable' in the circumstances.

The company (up 19p at 251p), which supplied steel for the 115m spiral sculpture by Turner prize winning artist Anish Kapoor to commemorate the 2012 Olympics, reported full-year profits of £15.3m, down from £50.8m. The divi was slashed to 7.5p from 15p a share.

Haughey said he expects this year to be 'very tough' with some recovery in 2012 but no return to peak levels before 2015 at the earliest.

Severfield employs 1,200 in the UK at two plants in Yorkshire, one in Bolton, Lancs and one in Enniskillen, Northern Ireland.

It is dependent on the UK for most of its business but has embarked on a joint venture project in India and is also hoping to boost sales in the Middle East. Haughey said he hopes today's Budget will 'encourage private sector investment'.

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